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Indonesia-South Korea FTA might come into effect in 2022Indonesia-South Korea FTA might come into effect in 2022 |
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According to media reports, the Indonesian Ministry of Trade is pushing for quick ratification of the Indonesia-South Korea Comprehensive Economic Partnership Agreement (IK-CEPA) to boost trade between the two countries.
The free trade agreement signed in December 2020, once implemented would eliminate tariffs on 97.3% of goods coming from Indonesia to South Korea, and 94% of goods imported from South Korea to Indonesia. Plastics, auto parts, and steel are expected to benefit the most from the IK-CEPA.
South Korea is among the top PP exporters to Indonesia over the past several years. At the moment, import South Korean PP block copolymer to Indonesia are entitled to 0% customs duty, while homo-PP and other PE grades are at 5%, and PVC at 6.5%.
As the government debates the issue in the parliament, Indonesian customers expect the IK-CEPA to come into effect in 2022.
